Income Tax Act 2007 section 344

Qualifying investments: introduction

Section 344 sets out the conditions that must be satisfied for an investment in a Community Development Finance Institution (CDFI) to count as a "qualifying investment" for the purposes of community investment tax relief.

• The investment must take one of three forms: a loan, securities, or shares, each of which must meet its own specific conditions
• The investor must receive a valid tax relief certificate from the CDFI in respect of the investment
• There must be no pre-arranged protection against the risks associated with the investment
• All three requirements — the type of investment conditions, the tax relief certificate, and the absence of risk protection arrangements — must be met simultaneously